Do Toyota’s hybrid sales mean the technology has a future?

Japanese automakers’ proclivity for low engagement with global electrification trends has been criticised as damaging their sales projections in key markets. For many, Toyota exemplified a once visionary company stuck in its ways, favouring emissions reduction and hybrid powertrains instead of the zero emission mandates embraced by the US and Europe.

In November 2021, Greenpeace ranked it the worst global OEM in terms of decarbonisation efforts, having sold fewer battery electric vehicles (BEVs) than any other. Since then, new management has seen Toyota finally make waves in the BEV space following manufacturing innovations. However, vindication for its prior hesitation could also be on the horizon.

As BEV enthusiastic automakers continue to reckon with stagnating sales, Toyota saw profit forecasts and share prices rise in February 2024 as it recorded a 47% year-on-year increase in hybrid sales in Q3 2023. With demand for the technology apparently gaining momentum, the electrification journey could now prove less linear than many anticipated.